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The dictator’s dilemma: to punish or to assist? Plan failures and interventions under Stalin

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Markevich, Andreĭ, 1976- (2007) The dictator’s dilemma: to punish or to assist? Plan failures and interventions under Stalin. Working Paper. Coventry: University of Warwick, Department of Economics. (Warwick economic research papers.

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Abstract

A dictator issues an order, but the order is not carried out. The dictator does not know whether the order failed because the agent behaved opportunistically, or because his order contained some mistake. Imperfect information creates his dilemma : whether to punish the agent, or assist her or both. This paper models the dictator’s intervention when an order fails. The analysis links the dictator’s coercive policy with the softness of budget constraints. The model is verified against the history of Stalin’s dictatorship, using statistical evidence extracted from the formerly secret records of the Communist Party's "control commission".

Item Type: Working or Discussion Paper (Working Paper)
Subjects: H Social Sciences > HC Economic History and Conditions
D History General and Old World > DK Russia. Soviet Union. Former Soviet Republics
Divisions: Faculty of Social Sciences > Economics
Library of Congress Subject Headings (LCSH): Stalin, Joseph, 1879-1953, Dictatorship -- Soviet Union, Information asymmetry, Decision making, Soviet Union -- Politics and government -- 1936-1953, Soviet Union -- Economic conditions -- 1917-1945, Soviet Union -- Economic conditions -- 1945-1955
Series Name: Warwick economic research papers
Publisher: University of Warwick, Department of Economics
Place of Publication: Coventry
Date: 2007
Number: No.816
Number of Pages: 44
Status: Not Peer Reviewed
Access rights to Published version: Open Access
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Politburo TsK VKP(b) I Sovet Ministrov SSSR, 1945 – 1953. Rosspen, Moskva. Kornai, János, 1980.Economics of shortage. North-Holland, Amsterdam. Kornai, János, Eric Maskin and Gerard Roland, 2003. Understanding the Soft Budget Constraint. Journal of Economic Literature, 41(4), 1095-1136. Lazarev, Valery, and Paul Gregory, 2002. The Wheels of a Command Economy: Allocating Soviet Vehicles. Economic History Review, 55(2), 324-48. Lazarev, Valery and Paul Gregory, 2003. Commissars and cars: A case study in the political economy of dictatorship, Journal of Comparative Economics, 31(1), 1-19. Markevich, Andrei, 2003. Byla li sovetskaia ekonomika planovoi? Planirovanie v narkomatakh v 1930-e gg. [Was the Soviet Economy Planned? Planning in the Ministries in the 1930s]. In: Ekonomicheskaia istoriia. Ezhegodnik. 2003 [Economic History Yearbook, 2003]. Rosspen, Moskva. Markevich, Andrei, 2007. How Much Control is Enough? Monitoring and Interventions in Stalin’s Command. Economy. Mimeo. Mises, Ludwig von, 1920/1935. Die Wirtschaftsrechnung im sozialistischen Gemeinwesen, translated in: F.A. Hayek (Ed.) Collectivist Economic Planning Critical Studies on the Possibility of Socialism. Routledge, London, pp. 87-130. Rees, E. A., 1987. State control in Soviet Russia: the rise and fall of the Workers’ and Peasants’ Inspectorate, 1920-34. St. Martin Press, New York. Rees, E.A. (Ed.), 1997. Decision-Making in the Stalinist Economy, 1932-1937. St. Martin Press, New York. Simonov, Nikolai S., 1996. Voenno-promyshlennyi kompleks SSSR v 1920-1950-e gody: tempy ekonomicheskogo rosta, struktura, organizatsiia proizvodstva i upravlenie. Rosspen, Moskva. Solomon, Peter, 1996. Soviet criminal justice under Stalin. Cambridge Univ. Press, Cambridge, UK. Wintrobe, Ronald, 1998. The political economy of dictatorship. Cambridge Univ. Press, Cambridge, UK. Wintrobe, Ronald, 2001. How to understand, and deal with dictatorship: an economic view. Economics of Governance, 2, 35-58. Archival: Hoover/RGANI: “Archives of the Former Soviet State and Communist Party’ from the Russian State Archives of Recent History (Moscow) at the Hoover Institution of War, Revolution, and Peace (Stanford, CA). Hoover/RGASPI: “Archives of the Former Soviet State and Communist Party’ from the Russian State Archives of Social and Political History (Moscow) at the Hoover Institution of War, Revolution, and Peace (Stanford, CA). GARF – State archive of Russian Federation (Moscow). Russian archival documents are numbered according to a standard system: collection (fond), inventory (opis), file (delo), folio (list).
URI: http://wrap.warwick.ac.uk/id/eprint/1400

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